Template-type: ReDIF-Paper 1.0
Author-Name: Iizuka, M.
Author-Email: iizuka@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Author-Name: Thutupalli, A.
Author-Email: thutupalli@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Title: Globalization, the rise of biotechnology and catching up in agricultural 
	 innovation: The case of Bt technology in India
Abstract: The agricultural sector has played an important role in the provision of 
	 food, foreign exchange and sustainable energy to many developing 
	 countries. This sector, however, has not been considered as a driving 
	 force of innovation as compared to other productive sectors. However, 
	 recent economics and international business literature suggests that the 
	 agricultural sector 1 has become knowledge intensive with the rise of 
	 biotechnology Bt; and 2 is a sector where firms in developing countries 
	 can play an important role in production and innovation due to their 
	 latent advantage in the context-specific or in-situ knowledge 
	 base. In this paper, we first present a conceptual framework that 
	 characterizes the knowledge required for successful agricultural 
	 innovation against the backdrop of globalization and rise of 
	 biotechnology. We then examine the case of diffusion of Bt cotton 
	 hybrids Bacillus thuringiensis, an insect resistant seed technology in 
	 India to illustrate the dynamics of knowledge creation and catching up 
	 by the local seed firms based on their interactions with global as well 
	 as other local firms. Our analysis reveals that the local firms with 
	 absorptive capacity, that is, the ability to effectively integrate 
	 location-specific in-situ knowledge and generic scientific knowledge 
	 global knowledge can catch up with global frontier technologies to 
	 gain significant domestic market shares.
Classification-JEL: O13, O31, O32, Q16
Keywords: Biotechnology, Agricultural innovation, Innovation, Globalization, India
Series: UNU-MERIT Working Papers
Creation-Date: 20140631
Number: 2014-054
File-URL: https://unu-merit.nl/publications/wppdf/2014/wp2014-054.pdf
File-Format: application/pdf
File-Size: 871 Kb
Handle: RePEc:unm:unumer:2014054